More than half of Americans, especially those with a financial strategy, report meeting their 2023 savings goals.Younger generations are most likely to report seeking guidance from financial professionals
New York, January 23, 2024–(BUSINESS WIRE)–New York Life's latest Wealth Watch survey finds that American adults are more financially resilient in the face of higher interest rates and rising credit card debt. Two-thirds of adults (64%) are confident in their ability to achieve their financial goals, and more than half of adults (52%) plan to save more than their desired amount in 2023 Did. Adults aim to save an average of $7,435.57, and she actually saved $6,138.06. – An adult targeted to save her $5,437, an improvement from her 2022 where she saved $5,011 on average.
A key component of an adult's financial confidence and ability to achieve goals is the presence of a financial strategy. in fact:
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63% of adults with a financial strategy will meet or exceed their 2023 savings goals, compared to only 37% of adults without a financial strategy
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Adults with a financial strategy are twice as confident in their ability to achieve their financial goals as adults without a strategy (81% vs. 41%, respectively)
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83% of adults with a financial strategy say they are as prepared or better prepared for financial emergencies as other generations, compared to 43% of adults without a financial strategy.
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Adults who have a financial strategy are more likely to say they have started saving for retirement than those who don't (58% vs. 18%, respectively)
“Our data clearly shows that having a financial strategy is a key factor in not only feeling confident about achieving your goals, but actually achieving them.Younger Generation report a strong engagement with their financial strategy. Gen Z and Millennials were more likely than any other demographic cohort to report a strong commitment to their financial strategy.” They will seek guidance from experts,” said Don Flosseaser, head of consumer insights at New York Life. “But despite evidence of strong habits, debt still stands in their way. Gen Z cites credit card debt as the second-biggest impact factor on their finances in 2023, behind inflation. Masu.”
American adults report feeling confident in managing debt and preparing for financial emergencies, with more than half meeting their 2023 savings goals, but women and Gen continue to report lower levels of confidence than
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By the end of 2023 and into 2024, the top three words adults used to describe their financial situation were stressed (36%), hopeful (35%), and anxious (31%) .
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Millennials led the way in savings in 2023, saving $9,299.45 compared to the average adult savings of $6,138.06.
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Gen Z saved an average of $6,440.67, Gen X saved $5,132.20, and baby boomers saved $4,059.72.
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American adults feel they are better equipped than other adults when it comes to managing debt and preparing for financial emergencies.
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76% of adults feel they can manage their debt better or just as well as others.
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Two-thirds (66%) of adults feel well or equally prepared for financial emergencies compared to other adults.
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When it comes to retirement, adults on average believe they can retire at age 64, with a majority (74%) confident they can retire at this age.
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Additionally, 62% of adults feel they are somewhat or similarly prepared for retirement compared to the rest of the population.
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Still, only four in ten adults (41%) currently report having any retirement savings, and one in five (21%) say they have a retirement strategy in place. %) only.
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Despite high personal financial confidence among adults, women and Gen Xers continue to have lower confidence than other demographic groups.
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Only 57% of women are confident they can reach their financial goals, compared to 75% of men.
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Gen
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Married women feel less confident about their finances than men (59% vs. 77%, respectively).
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Despite high confidence levels and increased savings, American adults continue to face challenges such as rising costs of living and rising credit card debt.
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The average total debt for people with credit card debt was $7,931.80, an increase from 2022, when the average debt was $6,320.98.
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Most adults with credit card debt are contributing an amount equal to or more than their 2022 debt repayment each month (77%), but about a quarter (23%) are contributing less than their 2022 debt repayments (77%). It is reported that there are few.
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On average, people with credit card debt report contributing $363.07 per month to pay it off, which is more than adults reported in 2022 ($430 per month). Slightly less.
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One in four women (25%) and 30% of Gen I am.
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More than half of adults (62%) cite inflation as the biggest financial concern that could affect their household finances heading into 2024, followed by rising interest rates (29%) and the possibility of a recession (28%). %).
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These are the same concerns reported in late 2022. At the time, 68% of adults were worried about inflation, 26% were worried about a possible recession, and 29% were worried about rising interest rates.
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Four in 10 adults (43%) expect the cost of living to be higher in the first six months of 2024 than in 2023.
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An overwhelming majority of adults (85%) reported that their finances would be negatively impacted in 2023.
“While economic indicators are showing growth and this Wealth Watch 2024 Outlook survey is quite positive, consumer confidence is hovering around 2008-2009 levels,” Frothesser said. . “For a variety of reasons, adults are not experiencing strong economic conditions in their day-to-day economic lives, and we are seeing severe challenges among certain demographic groups, specifically women and Gen “Exhibit less confidence in achieving their financial goals” have more difficulty managing credit card debt than men and other generational groups. ”
Despite widespread financial challenges, nearly half of adults report having emergency savings, and younger generations in particular are actively working on their financial strategies for the new year.
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Two-thirds (66%) of adults report developing a financial strategy, and nearly half (46%) of adults report reviewing their financial strategy or budget at least monthly.
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Just under half (48%) of adults have emergency savings, and adults have an average of about $15,027.74 saved up.
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Men are more likely than women to have set aside funds and savings (55% vs. 41%, respectively).
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Millennials (51%) and baby boomers (51%) are more likely than other generations (Gen Z: 44%, Gen X: 43%) to have financial savings. Masu.
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73% of adults took action in response to factors that will impact their finances in 2023. Among these, the most common methods were reducing discretionary spending (48%) and changing budget or financial strategy (31%).
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Two-thirds (64%) of adults with debt report adjusting their debt management strategy in the past year. The most common change was paying more than the monthly minimum to get debt under control (28%).
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Financial targets for 2024 broadly mirror those reported in 2023.
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Seven in 10 adults (72%) now have short-term financial goals, with the top three goals being paying for a vacation (28%) and buying themselves specific items they want (24%), and to buy something. Car (23%).
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Eight in 10 adults (80%) now have long-term financial goals for 2024, with building an emergency fund (41%) and paying off credit card debt (32%) being the most common. It's a target.
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“As we move into 2024, individuals report that they are maintaining the long-term financial goals they had committed to in 2023. Even in a tough economic environment, Americans are finding ways to save, manage debt, and improve their future.” It's heartening to see the continued focus on building plans to help them weather future financial shocks and unexpected expenses, and prepare them for long-term financial success. “And it's encouraging that Gen Z is not far behind other demographic cohorts in this area,” Frothesser said. . “As younger generations continue to focus on building a solid foundation for a lifelong financial journey, it is important to develop a comprehensive financial strategy and review it regularly with guidance from financial experts. It becomes extremely important.”
About Wealth Watch
Wealth Watch is a periodic survey conducted by New York Life that tracks Americans' feelings about their financial goals, their progress toward those goals, and their ability to secure their financial future. We identify key themes and trends emerging around topics such as roles. The importance of oriented solutions and financial guidance.
Research method
The poll was conducted from November 22 to 26, 2023 among a sample of 2,202 adults. Interviews were conducted online, and data were weighted to approximate the target sample of adults based on gender, age, race, education, and region. The full survey results have a margin of error of plus or minus 2 percentage points.
About life in New York
New York Life Insurance Company (www.newyorklife.com), founded in 1845, is the largest Fortune 100 company.1 An American mutual life insurance company and one of the world's largest life insurance companies. The New York Life group of companies, headquartered in New York City, provides life insurance, retirement, investments and long-term care insurance. New York Life currently has the highest financial strength ratings of any U.S. life insurance company from all four major credit rating agencies.2
1Based on revenues reported by Fortune Magazine, June 5, 2023, “Industry, Insurance: Fortune 500 Ranked within Life, Health (Mutual).” For methodology, please visit https://fortune.com/franchise-list-page/fortune-500-methodology-2023/.
2Comments from individual independent rating agencies as of October 19, 2023: AM Best (A++), Fitch (AAA), Moody's Investors Service (Aaa), Standard & Poor's (AA+).
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